New Means Test Numbers for April 1, 2015

March312015

Chapter 7 Eligibility Easier As Of April 1, 2015

[caption id="attachment_3003" align="aligncenter" width="300"] Image by Beyer courtesy of Wikimedia Commons and the German Federal Archives[/caption] The US Trustee's Office (the division of the Department of Justice that administers the bankruptcy process in the United States) has released its updated median income numbers for each state for Chapter 7 and Chapter 13 bankruptcy petitions filed on April 1, 2015 or after. These numbers are used in the "bankruptcy means test" to determine income-based eligibility for Chapter 7 bankruptcy and, in Chapter 13 bankruptcies, to determine whether a Chapter 13 payment plan can be just 36 months long or if a plan must be 60 months long (as well as whether there is a minimum amount that unsecured creditors must receive from the Chapter 13 payment plan). The new numbers contain some good news for Michigan residents considering filing for bankruptcy: median incomes per household size have risen by approximately $1,000.00 since November 1, 2014, the last time these numbers were updated. To be eligible for Chapter 7 bankruptcy, your household income, as determined by the bankruptcy means test, must be under the median income for a household of your size. This means that, going forward, at least until the next time the US Trustee updates these means test numbers, it will be slightly easier to file Chapter 7 bankruptcy---and slightly cheaper to file a Chapter 13 bankruptcy.

New Bankruptcy Means Test Numbers for Michigan

The new median incomes for each household size in Michigan as of April 1, 2015 are:

Household of 1: $45,226.00

Household of 2: $54,510.00

Household of 3: $63,995.00

Household of 4: $77,865.009

Households Above 4: Add $8,100.00 for each additional household member above 4 to the "Household of 4" median number

A Warning Regarding the Bankruptcy Means Test: Do Not Try This At Home!

It is important to remember, however, that it takes a skilled bankruptcy attorney to fully calculate the means test, which allows for various deductions to be applied if your household income is slightly higher than those median-numbers that can still allow you to qualify for Chapter 7. There is much in the way of practical experience, knowledge of local US Trustee practices, knowledge of local and Supreme Court case-law on the subject, and general tactics that go into full means test calculation that a layperson sitting at home with a computer and calculator will never be able to fully realize and incorporate. Online "means test calculators" do not do anything like an adequate job of incorporating these considerations and should be avoiding. Knee-jerk assumptions that you do not qualify for Chapter 7 bankruptcy based on a quick comparison of your household income with these numbers and that, therefore, you should not bother to seek the advice of an experienced bankruptcy attorney could be a costly and dangerous mistake if you are having issues dealing with your debt and the types of people who make a living trying to collect it from you. Schedule a consultation with an experienced Michigan bankruptcy attorney to fully and accurately explore your options. If you are a Michigan resident and would like to explore your options for a Chapter 7 or Chapter 13 bankruptcy with an experienced Michigan bankruptcy attorney, please contact us at (866) 674-2317 or click the button below to schedule a free, initial consultation.

Bankruptcy in the United States: A Timeline of Eroding Rights
Bankruptcy in the United States is an internationally unique legal remedy for those suffering from burdensome debt. Very few other countries allow individuals in debt to...

Collection Attempts Are Barred Post-Filing Even If Wrapped in Threat of Criminal Charge
Filing a Chapter 7 or Chapter 13 Bankruptcy Collections Harassment
The moment you file a bankruptcy in Michigan, all collections activity must...

New Rules Make It Easier Than Ever to Qualify for a New Mortgage after Bankruptcy
Conventional Mortgage Lending Now Only 2 Years After Bankruptcy
Fannie Mae has lowered its prohibition on "post-negative event" (bad stuff on...

New Michigan Bankruptcy Means Test Numbers for April 1, 2016
The US Trustee's Office (the division of the Department of Justice that administers the bankruptcy process in the United States) has released its updated median income...

Filing a Bankruptcy Will Extend a Redemption Period—But For Who?
What Is Michigan's Redemption Period?
The "redemption period" is the time allowed homeowners (and other property owners) under Michigan law to...

Michigan Chapter 7 Bankruptcy Means Test Eligibility Expansion!
The US Trustee's Office (the division of the Department of Justice that administers the bankruptcy process in the United States) has released its updated median income...

The Hilla Law Firm did an excellent job handling the trademark registration for my online business. In my case, the process turned out to be complicated as another business registered for a similar name. The Hilla Law Firm expertly handled the situation and my trademark was approved!
Kelly

This website is for general information and advertising only. The information presented is not legal advice, and your use of it does not create an attorney-client relationship. Any liability that might arise from your use or reliance on the information in or any links from this site is expressly disclaimed. The content of any communication you send to us via the Internet, our web-forms, or through e-mail may not be considered confidential, and your submission of a question through this web site does NOT create an attorney-client relationship.